HON · 10-Q · 2026Q3 · Full report

Operating Income and Margins

HONEYWELL INTERNATIONAL INC · 2026-10-22 · Importance 36 · Surprise 40 · In source text

Building Automation segment profit increased $44 million in Q3 and $163 million year to date, with margins expanding to 27.0% and 26.8%, respectively. Process Automation and Technology segment profit increased $23 million in Q3 and $54 million year to date, but margins declined 210 basis points to 22.2% in Q3 and 80 basis points to 22.6% year to date. Industrial Automation segment profit decreased $11 million in Q3 and $1 million year to date, while margins improved to 18.4% and 17.4%, respectively, because divestitures removed lower-margin businesses.

Key facts

• Earnings per share impact YTD included a gain on deconsolidation of Quantinuum of $15.70 after tax and higher segment profit of $1.07 after tax, partially offset by a nonrecurring Resideo gain of $2.49 after tax in prior year. source
• Other income decreased in Q3 2026 due to a nonrecurring gain in Q3 2025 of approximately $0.8 billion on Resideo termination agreement, higher divestiture-related costs of approximately $0.1 billion, partially offset by gain on sale of WWS and PSS businesses of approximately $0.3 billion. source
• Net income from continuing operations for the nine months ended September 30, 2026 was $6,096 million (variance vs prior year $4,500). source
• Other income (expense) for Q3 2026 was $(389) million and for the nine months ended September 30, 2026 was $(957) million. source

Impact estimates